Published on 6/8/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable barrier notes with step-up premium on AI Powered
Chicago, June 8 – HSBC USA Inc. priced $1 million of 0% autocallable barrier notes with step-up premium due Nov. 30, 2026 linked to the AI Powered US Equity Adjusted Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 7.85% annual call premium if the index closes at or above its initial level on any semiannual call observation date after one year.
If the notes are not called, meaning the index has closed below its initial level, and the index return is greater than 90% of the initial level, the payout at maturity will be par. If the index return is less than negative 10%, investors will be fully exposed to the decline of the index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium
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Underlying index: | AI Powered US Equity Adjusted Total Return index
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Amount: | $1,003,000
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Maturity: | Nov. 30, 2026
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If notes not called, par if index does not finish below barrier level; otherwise, full exposure to losses of index
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Call: | At par plus a call premium of 7.85% per year if index closes at or above its initial level on any semiannual call date after one year
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Initial index level: | 6,982.05
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Barrier level: | 6,283.845, 90% of initial level
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Pricing date: | Nov. 24, 2021
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Settlement date: | Nov. 30, 2021
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40439JTM7
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